The World Bank and the International Monetary Fund (IMF) urge Nigeria’s Central Bank (CBN) to remain committed to controlling the nation’s inflation rate. In December, Nigeria’s inflation increases to 34.8%, up from 33.6% in November, signaling ongoing economic challenges.
During a panel discussion, Sameer Matta, Senior Economist for Nigeria at the World Bank, emphasizes the need for the CBN to persist in its inflation control measures. He highlights the importance of addressing supply-side issues, such as boosting agricultural productivity and enhancing rural-urban linkages. Additionally, Matta suggests reviewing trade policies to specifically target key sectors.
He notes that Nigeria’s GDP is significantly impacted by fuel and foreign exchange subsidies, which together make up 4% of the country’s total GDP. Matta warns that failing to implement necessary reforms could result in substantial economic costs. He also advocates for continuing social protection initiatives to support vulnerable populations affected by these economic strains.
Christian Ebeke, Nigeria’s IMF representative, reinforces these points, calling for stronger collaboration between fiscal and monetary authorities to tackle inflation. Ebeke commends efforts to reduce deficit monetization and improve financial conditions, while emphasizing the need for fiscal policies to complement monetary actions. He also draws attention to the importance of addressing the socio-economic impact of reforms, especially regarding fuel subsidy removals and Naira reforms.
With inflation continuing to rise, experts agree that the right combination of reforms and social protection will be essential to stabilizing the economy and alleviating the strain on the most vulnerable segments of the population.
 urge Nigeria's Central Bank (CBN) to remain committed to controlling the nation’s inflation rate. In December, Nigeria’s inflation increases to 34.8%, up from 33.6% in November, signaling ongoing economic challenges.){kind=link}